- Goldman Sachs economists said shifting developers from presales toward completed homes will intensify pressure on cash-strapped developers and local-government finances.
- The revised forecast raises the expected land-sale revenue decline by 10 percentage points, increasing downside risk for China’s property market.
Quotes
“China’s recent overhaul of the way homes are sold will exacerbate already stretched local government finances, fueling a 30% drop in land sale revenues, Goldman Sachs Group Inc. economists said.”